Albertsons Companies (ACI) AI Stock Analysis

• Market Cap: $9.74B
• Dividend Yield: 3.38%
• Average Volume (3M): 8.67M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.04
• Revenue Growth: 2.08%
• EPS Growth: -1.63%
• Country: US
• Employees: 108,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.44
• Shares Outstanding: 549,307,560
• 10 Day Avg. Volume: 8,460,900
• 30 Day Avg. Volume: 8,667,302
• PEG Ratio: -0.47
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 15.91
• Enterprise Value/Market Cap: 2.57
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: 8.65
• 1Y Price Target: $23.67
• Price Target Upside: 33.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.14
• Revenue Forecast (FY): $83.49B

• Rating: 67 Neutral
• Price Target: $20.00 ▲(12.80% Upside)

Albertsons' overall stock score reflects its stable financial performance and attractive valuation. The company's strategic focus on digital growth and share repurchases, as highlighted in the earnings call, supports a positive outlook. However, challenges such as high leverage and profitability pressures temper the score.

Positive Factors

E-commerce Growth

Sustained e-commerce growth indicates strong digital adoption and positions Albertsons well in the expanding online grocery market.

Pharmacy Sector Expansion

Growth in the pharmacy sector enhances revenue diversification and strengthens Albertsons' competitive position in healthcare services.

Loyalty Program Expansion

Expanding loyalty program membership boosts customer retention and transaction frequency, supporting long-term revenue stability.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Albertsons' ability to invest in growth initiatives.

Gross Margin Decline

Declining gross margins suggest rising operational costs, which could pressure profitability and limit future earnings potential.

Store Closures

Store closures may reduce market presence and revenue potential, indicating challenges in optimizing the retail footprint.

Albertsons Companies Business Overview & Revenue Model

Company Description

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. As of February 26, 2022, it operated 2,276 stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and 1,722 pharmacies, 1,317 in-store branded coffee shops, 402 adjacent fuel centers, 22 distribution centers, and 20 manufacturing facilities, as well as various digital platforms. The company was founded in 1860 and is headquartered in Boise, Idaho.

How the Company Makes Money

Albertsons Companies generates revenue primarily through the sale of grocery and pharmacy products in its stores. The company's revenue model is driven by several key streams: first, the retail sale of food and non-food items, which constitutes the majority of its revenue; second, pharmacy sales, including prescription medications and health-related products; and third, fuel sales from its gas stations. Additionally, Albertsons benefits from loyalty programs and private label products, which enhance customer retention and margins. Strategic partnerships with suppliers and manufacturers also contribute to its earnings by allowing for promotional activities and cost efficiencies. Furthermore, the company's investment in e-commerce and delivery services has expanded its customer base and increased sales, particularly during the pandemic and in the growing online grocery market.

Albertsons Companies Financial Statement Overview

Summary

Albertsons demonstrates steady revenue growth and sound cash generation capabilities despite facing profitability challenges. The balance sheet reflects high leverage but shows signs of stabilization. Continued focus on improving operational efficiency and managing debt levels will be crucial for sustaining growth and enhancing shareholder value.

Income Statement

Albertsons shows a stable revenue growth with recent TTM revenue at $81.01 billion compared to $80.39 billion in the previous year, indicating a modest growth trajectory. However, net income has slightly declined, resulting in a net profit margin decrease. The gross profit margin remains healthy, but the decline in EBIT and EBITDA margins suggests rising operational costs affecting profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio, reflecting significant leverage at a level typical for the grocery industry. Despite this, the equity ratio shows slight improvement, indicating some strengthening of financial stability. Return on equity has decreased due to lower net income, signaling challenges in generating returns for shareholders.

Cash Flow

Albertsons maintains a positive free cash flow, though it has decreased compared to previous periods. The operating cash flow to net income ratio signifies efficient cash generation relative to net income. However, the declining free cash flow growth rate suggests potential pressures on future cash availability for investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.57B	80.39B	79.24B	77.65B	71.89B	69.69B
Gross Profit	17.09B	22.26B	22.05B	21.76B	20.72B	20.41B
EBITDA	2.89B	4.08B	4.53B	4.85B	4.87B	3.78B
Net Income	805.50M	958.60M	1.30B	1.51B	1.62B	850.20M
Balance Sheet
Total Assets	26.85B	29.31B	28.79B	28.75B	30.77B	29.39B
Cash, Cash Equivalents and Short-Term Investments	270.60M	339.20M	212.00M	477.20M	2.97B	1.78B
Total Debt	15.30B	14.18B	14.24B	15.01B	15.30B	16.07B
Total Liabilities	23.77B	25.92B	26.05B	27.14B	27.75B	28.06B
Stockholders Equity	3.08B	3.39B	2.75B	1.61B	3.02B	1.32B
Cash Flow
Free Cash Flow	670.50M	749.40M	628.20M	700.00M	1.91B	2.27B
Operating Cash Flow	2.12B	2.68B	2.66B	2.85B	3.51B	3.90B
Investing Cash Flow	-1.33B	-1.89B	-1.75B	-1.98B	-1.54B	-1.57B
Financing Cash Flow	-886.90M	-684.10M	-1.18B	-3.37B	-789.50M	-1.04B

Albertsons Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Negative. The current price of 17.73 is below the 20-day moving average (MA) of 18.41, below the 50-day MA of 18.13, and below the 200-day MA of 20.06, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 44.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACI.

Albertsons Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR	71 Outperform	$43.01B	16.43	24.83%	2.02%	-2.13%	3.22%
SFM	71 Outperform	$7.67B	15.26	36.96%	―	16.60%	49.76%
ACI	67 Neutral	$9.74B	10.49	32.04%	3.38%	2.08%	-1.63%
IMKTA	66 Neutral	$1.38B	24.94	3.58%	0.89%	-7.96%	-64.67%
WMK	66 Neutral	$1.60B	17.02	7.22%	2.11%	3.11%	6.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GO	51 Neutral	$1.19B	―	-0.37%	―	7.22%	-108.99%

Albertsons Companies Corporate Events

Albertsons Announces $750M Senior Notes Redemption Plan

On October 21, 2025, Albertsons Companies announced plans to redeem $750 million of senior notes due 2026, with the redemption expected on November 20, 2025. The company also revealed a new offering of $1,250 million in senior notes due 2031 and 2034, intending to use the proceeds to refinance existing debt, repay borrowings, and cover related expenses, with the offering expected to close around November 10, 2025.

The most recent analyst rating on (ACI) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.

Albertsons Announces $750M Share Buyback Agreement

On October 14, 2025, Albertsons Companies announced an accelerated share repurchase agreement with JPMorgan Chase Bank to buy back $750 million of its common stock, as part of a broader share repurchase program increased to $2.75 billion. This move, reflecting confidence in the company’s valuation and strategy, is expected to enhance shareholder value by repurchasing approximately 8% of its outstanding shares, with completion anticipated by the first quarter of 2026.

The most recent analyst rating on (ACI) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.

Albertsons Companies Reports Strong Q2 2025 Results

Albertsons Companies, Inc. is a prominent food and drug retailer in the United States, operating over 2,200 stores across 35 states under various well-known banners such as Safeway, Vons, and Jewel-Osco. The company focuses on providing quality food and pharmacy services while engaging in community support initiatives.

Albertsons’ Earnings Call: Growth Amid Challenges

Albertsons Companies, Inc. Earnings Call: Balancing Growth and Challenges

Albertsons Announces New Board Leadership Changes

On September 15, 2025, Albertsons Companies announced significant changes to its Board of Directors. James Donald retired as Chair of the Board, with Kim Fennebresque succeeding him. David Zinsner, Executive Vice President and CFO of Intel Corporation, joined the Board as an independent director, bringing extensive experience in finance and technology. The changes are expected to enhance the company’s strategic direction, particularly in digital transformation and innovation, aligning with its Customers for Life strategy.

The most recent analyst rating on (ACI) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.

Albertsons Companies Enters New $4 Billion Credit Agreement

On August 27, 2025, Albertsons Companies, Inc. and its subsidiaries entered into a Fifth Amended and Restated Asset-Based Revolving Credit Agreement, replacing their previous agreement from December 2021. This new agreement establishes a $4.0 billion senior secured revolving credit facility, with provisions for increasing commitments and utilizing proceeds for working capital and general corporate purposes. The agreement, which matures in 2030, includes various financial covenants and security interests, impacting the company’s financial flexibility and operational strategies.

The most recent analyst rating on (ACI) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.

Albertsons Companies Holds Annual Stockholders Meeting

On August 7, 2025, Albertsons Companies held its annual meeting of stockholders where several key proposals were voted on. Directors were elected for the upcoming year, Deloitte & Touche LLP was ratified as the independent accounting firm, and executive compensation was approved. However, stockholder proposals on food waste reporting, human rights policy, and reproductive health care risks were not approved, indicating a focus on traditional business operations over expanded social responsibility reporting.

The most recent analyst rating on (ACI) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.